Correlation Between Bank Mandiri and Oceantech Acquisitions
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Oceantech Acquisitions at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank Mandiri and Oceantech Acquisitions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mandiri Persero and Oceantech Acquisitions I, you can compare the effects of market volatilities on Bank Mandiri and Oceantech Acquisitions and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bank Mandiri with a short position of Oceantech Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Oceantech Acquisitions.
Diversification Opportunities for Bank Mandiri and Oceantech Acquisitions
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Oceantech is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Oceantech Acquisitions I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceantech Acquisitions and Bank Mandiri is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bank Mandiri Persero are associated (or correlated) with Oceantech Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceantech Acquisitions has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Oceantech Acquisitions go up and down completely randomly.
Pair Corralation between Bank Mandiri and Oceantech Acquisitions
If you would invest 38.00 in Bank Mandiri Persero on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Bank Mandiri Persero or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Oceantech Acquisitions I
Performance |
| Timeline |
| Bank Mandiri Persero |
| Oceantech Acquisitions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Mandiri and Oceantech Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Oceantech Acquisitions
The main advantage of trading using opposite Bank Mandiri and Oceantech Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Oceantech Acquisitions can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oceantech Acquisitions will offset losses from the drop in Oceantech Acquisitions' long position.| Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Turkiye Garanti Bankasi | Bank Mandiri vs. Delhi Bank Corp | Bank Mandiri vs. Uwharrie Capital Corp |
| Oceantech Acquisitions vs. ATRenew Inc DRC | Oceantech Acquisitions vs. SunLink Health Systems | Oceantech Acquisitions vs. The Gap, | Oceantech Acquisitions vs. Getty Realty |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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